Sublime

Burton Malkiel, who was kind enough to write the foreword for this book, has written one of the best: A Random Walk Down Wall Street. Rather, this chapter is about what a basic understanding of markets—the ideas covered in the first two chapters—can tell us about personal investing. Any investment strategy must obey the basic laws of economics, jus

Good policy uses incentives to channel behavior toward some desired outcome. Bad policy either ignores incentives, or fails to anticipate how rational individuals might change their behavior to avoid being penalized.

Good policy uses incentives to channel behavior toward some desired outcome. Bad policy either ignores incentives, or fails to anticipate how rational individuals might change their behavior to avoid being penalized.

Good policy uses incentives to channel behavior toward some desired outcome. Bad policy either ignores incentives, or fails to anticipate how rational individuals might change their behavior to avoid being penalized.

the private costs of my behavior are different from the social costs.

Self-interest makes the world go around, a point that seems so obvious as to be silly.

to participate in the great decisions of government. There was, Lippmann brooded, no “intrinsic moral and intellectual virtue to majority rule.” Lippmann’s disenchantment with democracy anticipated the mood of today’s elites. From the top, the public, and the swings of public opinion, appeared irrational and uninformed. The human material out of wh